New Delhi: Early closure of sugar mills in Maharashtra and Karnataka due to less sugarcane harvest is set to push the country’s sugar production to the lowest this year since 2009-10. Country’s apex sugar industry body ISMA estimated total production around 20.3 million tonnes compared with 23.4 million tonnes predicted in September.
Last year’s total production was 25.1 million tonnes. According to the latest estimate, this year’s production will be 19% lower. The government estimate for the current sugar season (October to September) is 22.5 million tonnes.
Though both government and ISMA claim that there will be no shortage since india has good stock, there are chances of price rise, which could force the government to cut import duties.
ISMA said in a statement that in January and February, cane yield in Maharashtra and Karnataka was badly hit by drought, forcing mills to shut early. “In some areas, the yield per hectare in the month of February 2017 was 40-50% lower than last year,” ISMA said.